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CFA Institute ESG-Investing Exam - Topic 6 Question 22 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 22
Topic #: 6

[All ESG-Investing Questions]

Which of the following describes a key goal of the EU Green Taxonomy?

ATo classify all businesses based on their ESG scores

BTo define which economic activities can be considered environmentally sustainable

CTo mandate that all public companies invest in climate solutions

Show Suggested Answer

Suggested Answer: B

by Marti at Nov 19, 2025, 12:24 PM

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Lyla

3 months ago

Exactly! B helps in promoting sustainable practices effectively.

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Vallie

3 months ago

B aligns with the EU's goals for a greener economy.

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Daniel

3 months ago

C seems unrealistic. Not all companies can invest heavily.

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Hana

3 months ago

A is too broad. Not all businesses fit neatly into ESG scores.

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Rashida

3 months ago

Agreed! B makes the most sense. Clear guidelines are needed.

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Hannah

3 months ago

I think it's definitely B. It’s about defining sustainability.

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Mitzie

4 months ago

I thought they were pushing for mandatory investments too!

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Tawna

4 months ago

A is misleading, it’s not just about ESG scores.

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Eden

4 months ago

Wait, so they’re not classifying all businesses? That’s surprising!

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Raul

5 months ago

Totally agree, B makes the most sense.

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Nikita

5 months ago

B is the right answer! It's all about sustainability.

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Daren

5 months ago

Haha, can you imagine if option C was the right answer? Good thing it's not, I'm not trying to get fined for not investing enough in solar panels!

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Monroe

5 months ago

B is the one. I'm not trying to get my business classified as "unsustainable" by the EU police.

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Twana

5 months ago

Option B is the way to go. Gotta love that EU taxonomy keeping things green and sustainable!

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Kaitlyn

5 months ago

I'm going with B. Classifying sustainable activities is the key goal, not forcing everyone to invest in climate stuff.

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Izetta

6 months ago

I feel like option C is too strong; I don’t recall any mandate for public companies in the materials we studied.

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Margarita

6 months ago

I’m not entirely sure, but I remember something about ESG scores being part of the discussion. Could it be A?

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Leonida

6 months ago

I think the main goal of the EU Green Taxonomy is about defining sustainable economic activities, so I’d lean towards option B.

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Lashaunda

6 months ago

I feel pretty good about this. The EU Green Taxonomy is focused on defining which activities are environmentally sustainable, so B seems like the clear choice to me.

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Clorinda

6 months ago

I'm not too sure about this one. Is it trying to get at the broader purpose of the taxonomy or just a specific objective? I'll have to think it through step-by-step.

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Raina

6 months ago

Okay, I've got this. The EU Green Taxonomy is all about classifying which economic activities are considered sustainable, so I'm confident B is the right answer.

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Hoa

7 months ago

B) To define which economic activities can be considered environmentally sustainable seems like the right answer.

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Sarina

7 months ago

I practiced a question similar to this, and I believe the focus was on sustainability definitions, which makes me think B is correct.

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Geraldo

8 months ago

Hmm, I'm a bit confused on this one. Is it asking about the overall purpose of the EU Green Taxonomy or just a specific goal? I'll need to re-read the question carefully.

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Corinne

8 months ago

I think the key goal is to define which economic activities can be considered environmentally sustainable, so I'll go with option B.

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Tambra

2 months ago

Yes, defining sustainable activities is crucial!

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Tresa

2 months ago

I think so too! It clarifies what counts as green.

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Nydia

2 months ago

Option B is the right choice for sure.

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Jesusa

7 months ago

Definitely! It's all about sustainability.

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Aleisha

7 months ago

I agree, option B makes the most sense.

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